Bulletin: Boeing Co. Ratings Likely Not Affected By Possible Transaction With Embraer S.A.

WASHINGTON D.C. (S&P Global Ratings) Dec. 22, 2017--S&P Global Ratings said today that its ratings on Boeing Co. (A/Stable/A-1) will likely not be affected by a possible transaction with Brazilian regional and business jet manufacturer Embraer S.A. (BBB/Negative/--). The two companies have acknowledged that they are currently discussing a possible transaction, though these discussions may not come to fruition. Neither company has specified what form such a combination might take, though it could be a joint venture, a full acquisition of Embraer by Boeing, or some other deal structure. Furthermore, the government of Brazil maintains a "golden share" in Embraer, which it could use to block any transaction between the two companies. The recent discussions are likely due, at least

...WASHINGTON D.C. (S&P Global Ratings) Dec. 22, 2017--S&P Global Ratings said today that its ratings on Boeing Co. (A/Stable/A-1) will likely not be affected by a possible transaction with Brazilian regional and business jet manufacturer Embraer S.A. (###/Negative/--). The two companies have acknowledged that they are currently discussing a possible transaction, though these discussions may not come to fruition. Neither company has specified what form such a combination might take, though it could be a joint venture, a full acquisition of Embraer by Boeing, or some other deal structure. Furthermore, the government of Brazil maintains a "golden share" in Embraer, which it could use to block any transaction between the two companies. The recent discussions are likely due, at least in part, to Airbus SE's investment in Bombardier Inc.'s C-Series program, which has materially improved the competitiveness of those aircraft. We believe that Boeing has flexibility at the current rating to undertake...

Bulletin